In today’s briefing:
- CATL (3750 HK) H-Share IPO: Fast Entry to Global Indices Is Touch & Go
- Korean Market Election Setup: Locals’ Low PBR Trading Trends
- Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters
- Renesas Electronics Block – Well Flagged, Clean up but Momentum Isn’t Great
- [Japan M&A] Bain Deal for Nissin (9066) Is Still Light Vs Comparable Deals
- Nissin Corp (9066 JP): Bain-Sponsored MBO at JPY8,100 Is Arguably Light
- PointsBet (PBH AU)/Betr (BBT AU): Mutual Due Diligence Proposed
- Broadcast Battles: PPF’s White Knight Bid Challenges MFE’s Media Ambition
CATL (3750 HK) H-Share IPO: Fast Entry to Global Indices Is Touch & Go
- Contemporary Amperex Technology (CATL) (300750 CH) could raise up to US$5.1bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
- There is a huge allocation to cornerstone investors that is locked up for 6 months. That significantly reduces float and the probability of Fast Entry inclusion to global indexes.
- CATL (3750 HK) will be added to Southbound Stock Connect from the open of trading on 16 June following the end of the Price Stabilisation period.
Korean Market Election Setup: Locals’ Low PBR Trading Trends
- Quick screen shows ₩1T+ names under 0.4x PBR — mostly retail, financials, and holdcos. Locals are keeping an eye on these with the election theme in play.
- This isn’t just hopeful chatter — both parties are seriously leaning into value-up policies. With dividend tax reform and solid sector catalysts, locals see real potential in the post-election trade.
- Long regional banks, hedge with KB and Shinhan. In retail, long domestic names, short China-dependent ones. For holdcos, long Hanwha and Doosan, short CJ and Kolon.
Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters
- Denso Corp (6902 JP) is looking to raise up to JPY137bn (US$940m) by selling 73.9m shares of Renesas Electronics (6723 JP) to international investors.
- The indicative price range is JPY 1,812-1,848/share, a discount of 1-2.95% to Monday’s close. The placement is 4.1% of shares outstanding and is 4.7 days of ADV.
- We do not expect any passive buying at the time of settlement of the placement shares. The earliest passive buying will take place in August and September.
Renesas Electronics Block – Well Flagged, Clean up but Momentum Isn’t Great
- Denso Corp (6902 JP) is looking to raise US$940m via selling its remaining stake in Renesas Electronics (6723 JP).
- DENSO last sold some of its stake nearly a year ago and hence, this deal is well flagged.
- In this note, we will talk about the placement and run the deal through our ECM framework.
[Japan M&A] Bain Deal for Nissin (9066) Is Still Light Vs Comparable Deals
- The deal price is higher than the Bloomberg article insinuated. The closing date is earlier than the Bloomberg article suggested. But that doesn’t mean it’s enough.
- The Large ToSTNeT-3 buyback last year changed the shareholder structure significantly, but many holders who sold are unknown. I would expect they were cross-holders.
- For that, this deal is NOT a done deal. There may be games played on this deal.
Nissin Corp (9066 JP): Bain-Sponsored MBO at JPY8,100 Is Arguably Light
- Nissin Corp (9066 JP) has recommended a Bain-sponsored MBO tender offer of JPY8,100 per share, a 27.6% premium to the last close.
- The offer is attractive compared to peer multiples and historical trading ranges. However, it is light compared to precedent transaction multiples.
- While the offer represents an all-time high, it is below the midpoint of the target IFA DCF valuation range. A counterbid cannot be ruled out.
PointsBet (PBH AU)/Betr (BBT AU): Mutual Due Diligence Proposed
- In Betr’s “Superior Offer” For PointsBet (PBH AU) Is Questionable, I surmised, on balance, PointsBet Holdings (PBH AU) would afford Betr Entertainment (BBT AU) due diligence. That is now confirmed.
- PointsBet initial focus will be on Betr’s scrip as it comprises 43% of the funding mix.
- Separately, Mixi Inc (2121 JP)‘s Scheme Booklet was dispatched on the 8th May, with a shareholder vote on the 12th June. Mixi has matching rights under its SID.
Broadcast Battles: PPF’s White Knight Bid Challenges MFE’s Media Ambition
- PPF launched a superior partial cash offer at €7.00 per share, positioning itself as a white knight against MFE’s lower-value bid and supporting ProSiebenSat.1’s current strategy.
- MFE’s mixed cash-share offer, based on a €5.70 valuation, lacks a premium and aims for creeping control; it has published its offer prospectus but hasn’t raised the price.
- Risk arbitrageurs may find an attractive setup in long ProSiebenSat.1, short MFE trades, though apportionment and offer risks require careful sizing and attention to German takeover rules.
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